PETROL TAX

Nelson Evening Mail, Volume LXI, 8 September 1926, Page 2

PETROL TAX

VIEWS OE MOTOR TRADERS

DEPUTATION TO MINISTER

A deputation of master carriers, wholesale and retail motor traders representative of the Dominion waited on the Hon. K. S. Williams, Minister of Public Works yesterday, and urged the adoption of a petrol tax in lien of the existing methods of motor taxation. Mr 13. L. Hammond, who acted as spokesman, said: "The Government has adopted a roading policy involving a proposal to make motorists pay a fair contribution towards the development of good roads. The interests represented by litis deputation are naturally anxious to see good roads constructed and maintained, and are not in the least averse to contributing a fair quota towards the cost. They are concerned, however, with the method of exacting that quota, and the actual amount they are required to pay.

“Admitting the primary object of the tax to be that of securing the necessary revenue to construct and maintain good roads, the principle of application should necessarily he that of requiring all users of the roads in question to pay in true proportion to the use they make of them. All motor-vehicles are required lo be registered, and all owners are re quirod to pay registration lees under the Motor-V chicles Act. As this method exacts taxation from all owners and the registration fees are based on a sliding scale according to the class of vehicle owned, we have no fault to find with this method of taxation —although wo do think that the fees should be nominal and sufficient merely to cover cost of administration onlv.

“The deputation desired lo protest against the present heavy traffic fees on the grounds that the principle of indirect taxation is wrong; one section only'of the community is being unduly penalised, and other sections equal Irresponsible are being correspondingly relieved of taxation, which they should rightly he called upon to bear/ and the fees levied are in any case excessive.

"In taxing the owners of lieavy vehicles only the Government has "done an injustice to one smalt section of the community, and by so doing lias relieved a very much Larger section of what is rightly an obligation on its part to share the cost of rood maintenance. The very fact that the heavy traffic fees have been so designed as to ensure a certain revenue per annum justifies Hie master carriers 1 claim that.'if that revenue were obtained by taxation evenly distributed over those who should rightly pay, Uien their contribution would be very much less than at present. To-day, under the Heavy Traffic Regulations, a taxation of £215,000 per annum is being exacted from owners of 14,028 vehicles, whilst the owners of 84,000 lighter motor-vehicles are not required to contribute one penny piece under this heading, and very little under any other form of taxation. “The deputation asks the Government to abolish the heavy traffic regulations, insofar as they relate to petrol driven vehicles, and also to abolish the tire tax, and in substitution of the same to inaugurate a petrol tax. At present roughly £215,000 per annum is received by way of lieavy traffic fees, and a further £186,000 per annum by way of tire tax —in all from those two sources £400,000. During 1925 the importations of motor spirit amounted to 33,125,217 gallons, and on this a tax of 3d per gallon would realise £414,065, less a small sum allowable by way of rebates. This deputation therefore asks the Government to legislate with a view to imposing a petrol tax not exceeding 3d per gallon in substitution of heavy traffic fees and tire tax.

“There are no objections to be logically made against the principle of a petrol tax. No one can' dispute the fact that by means of a petrol tax motorists can be required to pay a share of the cost of road mist ruction and maintenance bearing a true relationship to the actual use made of the roads.

“There is a growing sentiment in favour of a petrol tax as being the fairest method of imposing motor taxation. In fact, it is the only method which will ensure that every user of lhe roads pays in due proportion to the use he makes of the roads. A petrol tax is operative in forty three States of America, and also in South Australia. What is practicable there is practicable here. The New Zealand Counties Association at a recent conference declared itself in favour of a poire! tax, and the Rifglil, .Horn the Ib'ime Minister lias also expressed In's approval of a pel rot lay..'’ Mr Hammond said that since, it hud been decided to make representations on the matter of a petrol tax a, rumour had been circulated to the effect that, the Government contemplated increasing the existing heavy traffic fees, a nil the deputation would like to knew whether such rumour hail any foundation in fact.

The Minister, in reply, said tluat so far as the question of increasing the existing heavy traffic fees was concerned he was not aware of any intention on the part of the Government t () do so. He had not heard of such a move.

Mr Hammond : “Thank you. That allays quite a lot of anxiety on the part of master carriers.”

The .Minister said that lie considered that the whole question of motor taxation required carefpl and thorough consideration, because there were varied interests and conditions differed so much. He was not in a. position to reply to the deputation beyond saying that he would consider the. representations made and discuss the- matter with his colleagues.